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Are there any known cases were antivirus companies for some reason have choosen to make their product allow/ignore malicious software? The reason could be government coercion or former trustworthy companies/developers turning to cyber-crime.

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I don't know of any, but Microsoft has had a suspicious history of numerous vulnerabilities, despite being one of the wealthiest businesses in the world. Also, a backdoor was found in the iPhones that's a bit suspicious, here's an article –  JVE999 Jul 24 at 19:52
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The closest thing I have found is the report of McAfee contacting the FBI to assure that the bureaus keylogger "Magic Lantern" would not be detected. McAfee denied that such a thing had ever happend. –  qnyz Jul 25 at 11:50

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